Goldman Sachs says gold has more in common with Manhattan real estate than oil
“You can’t pump gold — but you can bid it out of someone’s hands. Gold doesn’t get used — it changes hands and gets repriced”
“It's market clears through changes in ownership, not production-versus-use balances,” Goldman’s analysts wrote. "The gold price reflects who is more willing to hold it and who's willing to let go."
The Goldman report also identified two groups of gold buyers — “conviction buyers” like central banks, spectators and ETFs, and “opportunistic buyers,” meaning households in emerging markets.